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Managing the Risk and Reward Equation

Meeting business performance goals is directly tied to effectively managing risks



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The Risk and Reward equation is at the heart of all significant business decisions. As economies pick up and the call for new ideas, innovation and change intensifies, so does the need to take big decisions involving risk. At the same time the many corporate debacles of recent memory remind us that failure to measure and understand risk can be disastrous.

So managers are faced with a conundrum: they must take risks to gain competitive advantage and to move their organizations on but taking risks can, as in the case of the BP Gulf oil disater, have catastrophic financial, legal, reputational, environmental, physical and human consequences.

An Enterprise Risk Conference in Toronto on 24 June is set to address this conundrum. This one-day conference at Schulich School of Business is designed for experienced managers and professionals involved in risk and for graduates of Schulich’s Masters Certificate in Risk Management & Business Performance.

In his book Sleepwalkers, Christopher Clark talks of the ‘normative power of the factual’ when considering the pre-First World War alliance system, and the natural human tendency to assume the status quo is normal and therefore right. This tendency, as pre-1914, can be dangerous. The status quo can in itself present big risks and true sustainability very often requires change and taking decisions which involve weighing risk and reward.

Meeting business performance goals today is directly tied to effectively managing the risks your business and organization face. Sticking to an out-dated status quo in a fast changing environment can be added to a long list which includes: strategic risk; organizational risk; financial risks; M&A and transformational transaction risks; IT and cyber security risk; reputational risk; business model risk; credit and market risk; operational risk; fraud; etc.

To avoid having to move from risk management to crisis management, organizations need to be prepared, and effective risk management is an essential competency to support business performance. It can and does make a difference over the long term, yet few business leaders have benefited from training in this area.

"From everything we've seen in the marketplace, it has become evident that many organizations didn't understand their risks and weren't managing them", says Carmen Rossiter, program director. "So there needs to be a lot more rigour and discipline around risk management – it has become a core competency for organizations, managers and their people to manage risk in a dynamic and changing environment."

Participants in the Schulich Masters Certificate program will consider topics such as:

  • Risk and business performance – the risk and reward equation
  • Articulating risk appetite as an essential starting point
  • Types of risk faced by organizations – present and future
  • Establishing clear oversight and governance
  • Building a risk management infrastructure
  • Your risk management vision – aligning to business strategy
  • Accountability for risk management – roles and responsibilities
  • Measuring and monitoring risk and performance
  • Integration with strategy, performance management, and everyday decision-making
  • Risk reporting: to senior management and key stakeholders
  • The value of agility in a fast-changing environment
  • The market value of good risk management




F
isk Conference: 24 June 2015


Based in Toronto, Canada, the Schulich Executive Education Centre (SEEC) is a world-leader in corporate learning





 
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